Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"

Salem Corporation is considering implementing a 401k program for its employees.

Salem Corporation is considering implementing a 401k program for its employees.

The program plan will include the company matching at 50% of the employee’s contribution up to 6% contribution.

The Human Resources manager proposing this plan feels it will reduce turnover, improve morale, and provide a competitive edge when recruiting new employees.

The HR manager has estimated Salem’s annual contribution to be $300,000 and the savings to be $70,000 in employee turnover costs and improved performance.

Need assignment help for this question?

If you need assistance with writing your essay, we are ready to help you!






Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality

Management is concerned about this additional cost.

In addition, you should discuss the 401k limits and special treatment for highly compensated employees.


Prepare a response (750-1,000) words documenting how, as a tax analyst, you see this program, and note any tax implications related to the program.

Prepare a 500-750 word written response to the following:

In January 2010, Salem Corporation, purchased $350,000 of new MACRS 5-year property in the US.

This equipment was placed in service May 1, 2010. Salem wants to take as much depreciation in 2010 as possible.

Calculate the depreciation for 2010. If Salem had been located in a qualified enterprise zone, what would be the depreciation amount?

Explain the depreciation method you used.

In addition, include the tax benefits (savings) for the first year and the present value of the total tax benefits for the entire 5-year period.

Discuss how the tax benefits and present value would change if a different method of depreciation was used.

Also, discuss when Salem would not choose to take as much depreciation as possible.

"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"